IDEAS home Printed from https://ideas.repec.org/a/spr/joevec/v9y1999i1p135-154.html
   My bibliography  Save this article

Reassessing the empirical validity of the human-capital augmented neoclassical growth model

Author

Listed:
  • Elias Dinopoulos

    (Department of Economics, University of Florida, Gainesville, FL 32611, USA)

  • Peter Thompson

    (Department of Economics, University of Houston, Houston, TX 77204, USA)

Abstract

We reassess Mankiw, Romer and Weil's [mrw] version of the Solow model using, as did mrw, cross-sectional data to estimate the steady-state equation governing income per capita levels. The model fails in two critical areas. First, plausible factor shares obtained by mrw are not robust to the substitution of two measures of human capital that are more precise than the secondary school enrollment rates used by mrw. Second, the null hypothesis of an exogenous and identical level of technology in all countries is rejected. We also explain why the Solow model performed well despite the above shortcomings.

Suggested Citation

  • Elias Dinopoulos & Peter Thompson, 1999. "Reassessing the empirical validity of the human-capital augmented neoclassical growth model," Journal of Evolutionary Economics, Springer, vol. 9(1), pages 135-154.
  • Handle: RePEc:spr:joevec:v:9:y:1999:i:1:p:135-154
    as

    Download full text from publisher

    File URL: http://link.springer.de/link/service/journals/00191/papers/9009001/90090135.pdf
    Download Restriction: Access to the full text of the articles in this series is restricted
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hans-Friedrich Eckey & Reinhold Kosfeld & Matthias Türck, 2007. "Regional Convergence in Germany: a Geographically Weighted Regression Approach," Spatial Economic Analysis, Taylor & Francis Journals, vol. 2(1), pages 45-64.
    2. Dinopoulos, Elias & Thompson, Peter, 2000. "Endogenous growth in a cross-section of countries," Journal of International Economics, Elsevier, vol. 51(2), pages 335-362, August.
    3. Eric Berr & François Combarnous & Eric Rougier, 2005. "Too much consensus could be harmful : measuring the degree of implementation of the Washington consensus and its impact on economic growth," Documents de travail 116, Groupe d'Economie du Développement de l'Université Montesquieu Bordeaux IV.
    4. Leonard Dudley & Ulrich Blum, 2001. "Religion and economic growth: was Weber right?," Journal of Evolutionary Economics, Springer, vol. 11(2), pages 207-230.
    5. Cooray, Arusha & Paradiso, Antonio & Truglia, Francesco Giovanni, 2013. "Do countries belonging to the same region suggest the same growth enhancing variables? Evidence from selected South Asian countries," Economic Modelling, Elsevier, vol. 33(C), pages 772-779.
    6. Peter Howitt, 2000. "Endogenous Growth and Cross-Country Income Differences," American Economic Review, American Economic Association, vol. 90(4), pages 829-846, September.
    7. Mihaela Iulia Pintea & Peter Thompson, 2007. "Technological Complexity and Economic Growth," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 10(2), pages 276-293, April.
    8. Breton, Theodore R., 2004. "Can institutions or education explain world poverty? An augmented Solow model provides some insights," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 33(1), pages 45-69, March.
    9. Aamer S. Abu-Qarn, 2019. "Reassessment of the Proximate Determinants of Income Levels and Growth of Nations," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 47(4), pages 463-483, December.
    10. Nevin Cavusoglu & Edinaldo Tebaldi, 2006. "Evaluating growth theories and their empirical support: An assessment of the convergence hypothesis," Journal of Economic Methodology, Taylor & Francis Journals, vol. 13(1), pages 49-75.
    11. Peter Thompson & Mihaela Pintea, 2005. "Technological Complexity, R&D and Education: Some Pleasant Arithmetic," Computing in Economics and Finance 2005 185, Society for Computational Economics.
    12. Alicja Olejnik, 2008. "Using the spatial autoregressively distributed lag model in assessing the regional convergence of per‐capita income in the EU25," Papers in Regional Science, Wiley Blackwell, vol. 87(3), pages 371-384, August.

    More about this item

    Keywords

    Economic growth ; Solow model ; Technology ; Human capital;
    All these keywords.

    JEL classification:

    • O2 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:joevec:v:9:y:1999:i:1:p:135-154. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.